By Kelli Kiemle, AIF®, Managing Director of Growth and Client Experience as featured in Kiplinger
Sometimes a breakup is for the best. Here’s how to handle ‘the talk’ and make the switch to a new professional who’s a better fit for you.
Making a change is one of the hardest things to do, especially when it involves a trusted relationship. This is even truer when that relationship is with your financial adviser, a relationship that is built on discussing money and sharing some of your most personal dreams and fears.
Changing financial advisers can feel daunting. It’s a partnership rooted in trust and deep connection, and breaking up can be difficult to do, not just emotionally but logistically. It takes effort to find a new adviser, complete the onboarding paperwork, and then have the “breakup” conversation with your current adviser. But you are not alone in this journey — according to a recent YCharts survey, 75% of advisory clients left or considered leaving their advisers in 2023.
Is it a good idea to change financial advisers?
The decision to change financial advisers is purely a personal choice — only you and your partner (if you have one) know the right answer. Based on my nearly 20 years in the industry, I’ve seen many reasons why clients decide to switch. Here are a few key questions to help evaluate your current relationship with your adviser:
- Do I feel that my adviser understands my short-term and long-term goals?
- Does my adviser really listen to my needs, desires and questions thoroughly?
- Do they give me peace of mind?
- Am I confident in the advice I am receiving, AND does my adviser follow up on my requests?
- Does my adviser provide the level of service and communication promised? Are they responsive and easy to reach during working hours?
- Does my adviser follow through and complete action items and hold me accountable for my own tasks?
- Is there a larger team that could continue serving me if something were to happen to my adviser?
If you answered “no” to any of these questions or feel in your gut that maybe you are no longer happy with this relationship, then it might be time to reassess your relationship and seek other options.
How do I switch from one financial adviser to another?
I won’t sugarcoat it — switching financial advisers can feel as overwhelming as going to the doctor or filing your taxes. It requires research, paperwork and gathering documentation, such as your most recent statements, estate plans and tax returns.
However, this effort is crucial. A good adviser will ask for this information to gain a comprehensive understanding of your financial situation. If they don’t, consider it a red flag —they might be too focused on numbers and not enough about advising on your whole financial picture.
There are several ways to find a new financial adviser, but here are a couple of suggestions:
- Ask someone you respect, such as a close friend, business executive or family member, to see if they have anyone they recommend.
- Use a third-party platform like Zoe Financial, SmartAsset or Wealthramp. These databases help pair investors with firms that participate in their platforms, and all advisers listed are vetted to help ensure they meet specific standards of expertise and professionalism.
- Visit a local branch of custodians like Charles Schwab and Fidelity Investments. They can refer you to a partner firm or connect you with their in-house advisers.
- Seek referrals from another trusted professional, such as your CPA, estate planning attorney, insurance broker, etc.
- Review top adviser lists, but understand the methodology of how the list was compiled — some focus on assets under management (AUM), while others may allow advisers to pay for placement.
